CPF SA

[iangreg]

Hi, need advice.
My wife reaches 55 next year but hasn’t hit FRS. Am below 55 but hit FRS.
Can I transfer SA to her SA so that she reaches her FRS and then withdraw excess when her RA account begins?
What are/is our option to maximise cash withdrawal from CPF upon reaching 55?

 

[zoneguard]

Can I transfer SA to her SA so that she reaches her FRS and then withdraw excess when her RA account begins?

Spousal transfers between SA is not allowed before 55. When a member reaches FRS in RA, the member can then choose to withdrawal excess from SA/OA but the withdrawal is from SA first followed by OA. You can do spousal transfers (OA,SA,RA) to SA after you have reached 55 yourself. https://www.cpf.gov.sg/members/FAQ/...ment-sum-topping-up-scheme?ajfaqid=faq2192161

You can transfer your CPF savings[1] after setting aside your Basic Retirement Sum (BRS)[2].

[1] Your OA savings will be transferred first, followed by your SA and then your RA savings. You can write to CPF Board to specify the CPF accounts from which to transfer to your spouse. Please note that if you use your RA savings3 for the transfer, the sum of your RA savings and property4 may be less than your FRS. As a result, when you make a withdrawal from your OA and SA, a portion of the savings will be used to meet your FRS in the RA.

[2] BRS can be set aside using your OA savings, SA savings, RA savings3, and net amounts withdrawn for investments5.

Do SA shield to maximize withdrawals from CPF upon formation of RA at 55.

 

[Okenba]

Hi, need advice.
My wife reaches 55 next year but hasn’t hit FRS. Am below 55 but hit FRS.
Can I transfer SA to her SA so that she reaches her FRS and then withdraw excess when her RA account begins?
What are/is our option to maximise cash withdrawal from CPF upon reaching 55?

You can't transfer anything out of SA before 55.
But you should be able to transfer from your OA to her SA. Or from her own OA to her SA. Or cash top up to her SA up to FRS. Only the cash top up would be eligible for tax rebate.

 

[Nofear40]

There is no tax relief for top-ups to ERS:
https://www.iras.gov.sg/irashome/In...tions-for-Individuals/CPF-Cash-Top-up-Relief/

Thanks

 

[iangreg]

Thanks for providing the insights and advice.

 

[yuzu28]

What else can be done if SA can no longer be topped up?

 

[snowcrabramyeon]

What else can be done if SA can no longer be topped up?

You can still do voluntary contribution of $37,740 every year and a portion of it will go to SA. But suggest you top up your MA to the max first ($63,000) before you do the rest, so as to maximise the interest. If you are 55 or older, you can also top up your RA to the prevailing ERS.

 

[yuzu28]

You can still do voluntary contribution of $37,740 every year and a portion of it will go to SA. But suggest you top up your MA to the max first ($63,000) before you do the rest, so as to maximise the interest. If you are 55 or older, you can also top up your RA to the prevailing ERS.

I think all max out already... Unless maybe i transfer cash in?

 

[snowcrabramyeon]

Yes, all those suggestions (voluntary contribution, topping up to prevailing ERS etc) involved you putting cash in. Have you already maxed out all these contributions?

 

[Okenba]

What else can be done if SA can no longer be topped up?

Be done for what?

To top up SA? If you have reached FRS, the only way to top up is by employment contribution or voluntary contribution. MA overflow will not hit SA (if SA already at FRS), and you cannot move more OA to SA or cash top up SA if your SA has already hit FRS.

To get tax relief? Then you still have SRS, contribution to MA, or even voluntary contribution to all 3.

Your question is not well defined.

 

[yuzu28]

Yes, all those suggestions (voluntary contribution, topping up to prevailing ERS etc) involved you putting cash in. Have you already maxed out all these contributions?

I have not tried cash contribution yet. I was trying to transfer OA to SA but not allowed.

Be done for what?

To top up SA? If you have reached FRS, the only way to top up is by employment contribution or voluntary contribution. MA overflow will not hit SA (if SA already at FRS), and you cannot move more OA to SA or cash top up SA if your SA has already hit FRS.

To get tax relief? Then you still have SRS, contribution to MA, or even voluntary contribution to all 3.

Your question is not well defined.

Thanks. I think I've gotten an answer from u.

 

[dgeralds]

Hi All

Im fast approaching 55 on 10 july. I have created poems account and tested out buying Nikko AM shenton short term fund fd (SGD). I have the following today:
OA 272K
SA 276k

Please help to confirm the following actions / timeline that i am going to take are correct:
1. 1 Jul
- do shielding for 236K in SA
- SA 40K
- OA 272K

2. 10 Jul - 55 years old
- RA will be created auto by CPF board
- RA 186k (FRS) - 40K from SA and 146K from OA - auto done by cpf board
- SA 0K
- OA 126K

3. 13 Jul
- Transfer 93K from OA to RA via the Retirement Sum Topping-Up Scheme (RSTU).
- RA 279K
- SA 0K
- OA 33K

4. 15 Jul
- deshield SA
- SA 236K
- OA 33K
- RA 279K

Also how to make the balance OA 33K (and whatever cash i have) to go into SA?

Thank you.

 

[zoneguard]

Hi All

Im fast approaching 55 on 10 july. I have created poems account and tested out buying Nikko AM shenton short term fund fd (SGD). I have the following today:
OA 272K
SA 276k

Please help to confirm the following actions / timeline that i am going to take are correct:
1. 1 Jul
- do shielding for 236K in SA
- SA 40K
- OA 272K

2. 8 Jul
- Transfer 239K from OA to SA
- OA 33K
- SA 279K

3. 10 Jul - 55 years old
- RA will be created
- RA 279k [SA will auto flow to RA (ERS)]
- SA 0K
- OA 33K

4. 15 Jul
- deshield SA
- SA 236K
- OA 33K

Also how to make the balance OA 33K (and whatever cash i have) to go into SA?

Thank you.

Step 2 not possible , see

At step 3, FRS in RA will be formed from 40K from SA and FRS - 40K (146K) from OA. Withdraw BRS from OA and cash top-up to RA to form ERS. FRS is 186K and ERS is 279K this year. BRS is 93K. So RA has 192K. SA has 0. OA has 33K.

Step 4: Deshield SA. SA has 236K , RA has 279K , OA has 33K.

 

[dgeralds]

Step 2 not possible , see

At step 3, FRS in RA will be formed from 40K from SA and FRS - 40K (146K) from OA. Withdraw BRS from OA and cash top-up to RA to form ERS. FRS is 186K and ERS is 279K this year. BRS is 93K. So RA has 192K. SA has 0. OA has 33K.

Step 4: Deshield SA. SA has 236K , RA has 279K , OA has 33K.

Hi zoneguard

Im confused with step 3.

I already informed CPF that I want ERS. So in step 3, will they not auto move 40K (from SA) and 239K (from OA) to RA? Then RA becomes 279K?

 

[zoneguard]

I already informed CPF that I want ERS. So in step 3, will they not auto move 40K (from SA) and 239K (from OA) to RA? Then RA becomes 279K?

See this, https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-scheme

Q: How is the retirement sum set aside?
A: When you reach 55 years old, your Special and/or Ordinary Accounts savings will be transferred to your Retirement Account (RA), up to the Full Retirement Sum (FRS).

You can choose to set aside a larger retirement sum, up to the Enhanced Retirement Sum, by topping up your RA using cash or transferring your remaining CPF savings in the Special and/or Ordinary Accounts via the Retirement Sum Topping-Up Scheme (RSTU).

Based on the second sentence, it is not automatic. You need to transfer the OA amount to RA via RSTU. https://www.cpf.gov.sg/eSvc/Web/Schemes/TransferAmountSpecialAccountToRetirementAccount/Index

 

[dgeralds]

See this, https://www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-scheme

Q: How is the retirement sum set aside?
A: When you reach 55 years old, your Special and/or Ordinary Accounts savings will be transferred to your Retirement Account (RA), up to the Full Retirement Sum (FRS).

You can choose to set aside a larger retirement sum, up to the Enhanced Retirement Sum, by topping up your RA using cash or transferring your remaining CPF savings in the Special and/or Ordinary Accounts via the Retirement Sum Topping-Up Scheme (RSTU).

Based on the second sentence, it is not automatic. You need to transfer the OA amount to RA via RSTU. https://www.cpf.gov.sg/eSvc/Web/Schemes/TransferAmountSpecialAccountToRetirementAccount/Index

Got it. I have re-done the steps. Please help to check if it is ok now...

1. 1 Jul
- do shielding for 236K in SA
- SA 40K
- OA 272K

2. 10 Jul - 55 years old
- RA will be created
- RA 186k (FRS) - 40K from SA and 146K from OA
- SA 0K
- OA 33K

3. 13 Jul
- Transfer 93K from OA to RA via the Retirement Sum Topping-Up Scheme (RSTU).
- RA 279K
- SA 0K
- OA 33K

4. 15 Jul
- deshield SA
- SA 236K
- OA 33K

how to make the balance OA 33K (and whatever cash i have) to go into SA?

Thank you.

 

[Okenba]

You may want to consider withdrawing the 33k in OA. Reason being that if you do not do so when SA is shielded, you will need to shield it again when you do want to withdraw OA and that means a 40k withdrawal from SA as well.

Unless you're happy to keep it in your OA or if you're still working and expect more contributions to your OA then maybe you will shield and withdraw when you fully retire...

 

[dgeralds]

You may want to consider withdrawing the 33k in OA. Reason being that if you do not do so when SA is shielded, you will need to shield it again when you do want to withdraw OA and that means a 40k withdrawal from SA as well.

Unless you're happy to keep it in your OA or if you're still working and expect more contributions to your OA then maybe you will shield and withdraw when you fully retire...

I don't really get what you mean. By the way im still working and will continue to work until retirement age.

 

[zoneguard]

You may want to consider withdrawing the 33k in OA. Reason being that if you do not do so when SA is shielded, you will need to shield it again when you do want to withdraw OA and that means a 40k withdrawal from SA as well.

Withdrawing just SA interest followed by OA interest without touching both SA and OA principal is allowed.

 

[zoneguard]

how to make the balance OA 33K (and whatever cash i have) to go into SA?

Thank you.

I don't think it is possible. You can use cash to do VC to all 3 accounts ( subject to CPF annual limit 37,740 of all contributions) and some will flow to SA based on the contribution ratios by age and this can be done at any age but most of it will end up in OA. https://www.cpf.gov.sg/Assets/employers/Documents/Table 11_Pte and Npen_CPF Allocation Rates Jan 2016.pdf , next year 2022 this table will change. https://forums.hardwarezone.com.sg/threads/increase-in-cpf-contributions-rates-in-jan-2021.6476049/
19.64% of VC will end up in SA from Jan 2022 for above 55 to 60.